Following the SEC's lawsuit against two main exchanges, investors are evacuating altcoins.
According to a report published by K33 Research on June 13, the total market capitalization of Bitcoin, Ethereum, and stablecoins accounts for 80.5% of the approximately $1 trillion market capitalization of all crypto assets.
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As a result of the SEC's lawsuit, a large number of altcoins were declared securities, causing their prices to plummet dramatically. Among the top 10 cryptocurrencies by market capitalization, Binance Coin (BNB), Cardano (ADA), and Solana (SOL) are also down about 30% over the past week.
If the SEC's claim that many tokens are securities is accurate, issuers and exchanges will be required to register with the SEC under more stringent conditions. Popular retail trading platforms Robinhood and eToro have ceased trading in the United States for a number of the SEC-identified tokens, while significant market makers appear to have sold off these tokens in anticipation of a decline in demand.
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Altcoins Perform Poorly
K33 observes that the legal battle could drag on for years, capital inflows to tokens under SEC oversight will be hampered, and regulatory risks will encourage Bitcoin and Ethereum investments as secure havens. Stated.
"Due to excessive compliance activity and overall low trading volumes, funds will likely revert to a hands-off approach, further diminishing market participants' investment appetite. According to K33's report, the market decline could be prolonged.
Due to the costs and hazards of allocating capital to alternative cryptocurrencies, Bitcoin and Ethereum's dominance may increase over the next year.
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Bitcoin and Ethereum presently outperform the majority of altcoins. According to data from CoinDesk, Bitcoin and Ethereum have appreciated by 57.3% and 45.4% since the beginning of the year.
Several altcoins, including Binance Coin (-2.7%) and Polygon (-15%), have reached new yearly lows.
|Translation: coindesk JAPAN |Editor: Takayoshi Masuda |Image: K33 Research |Original: Bitcoin, Ethereum, and Stablecoins Total 80% of the $1T Crypto Market Cap as Investors Flee Altcoins
